Category: Fiat Currency
The analysis published under this category are as follows.
Friday, February 28, 2014
Legal Tender, Gold, Silver and Alternative Currency / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
History does not repeat; it rhymes.Current stability comes from confidence and force. We've all heard that cliché over and over. But to rhyme is to the use any words you choose. We can rhyme in paper or digits, but it is all backed by nothing.
There is a not-so-subtle difference between currency and legal tender. Legal tender implies both force and control. And it's worthwhile to explore how far history can be re-expressed through technology.
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Thursday, February 27, 2014
Bulgaria’s Currency Board versus Ukraine’s Chaos / Currencies / Fiat Currency
By: Steve_H_Hanke
When Communism inevitably and finally collapsed, Bulgaria’s economy was a basket case – behind almost all other communist basket cases, including Ukraine’s. Indeed, Bulgaria defaulted on its debt in 1990. By February 1991, Bulgaria had broken out in a bout of hyperinflation, with the inflation rate at 123% per month. And in February 1997, Bulgaria experienced the agonies of hyperinflation again, with the inflation rate reaching 242% per month.
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Tuesday, February 25, 2014
Stay Ahead of This (Massive) Currency Shift / Currencies / Fiat Currency
By: Money_Morning
Peter Krauth writes: China's political and economic presence surges daily. Lockstep with that surge is the growing significance of its currency.
Along with China's emergence as the world's second-largest economy, its yuan recently displaced the euro and became the second-most used currency for international trade.
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Friday, February 21, 2014
All Currencies Are an Inverse Pyramid Based on The Dollar / Currencies / Fiat Currency
By: Alasdair_Macleod
When US money supply measured by M2 stood at $11 trillion in December 2013, I calculate that total broad money of the next largest 50 countries ranked by GDP amounted to the equivalent of a further US$67 trillion at current exchange rates. And that's only on-balance sheet: we must add in global shadow banking, estimated by the Financial Stability Board to have been an extra $67 trillion in 2011, probably about $75 trillion today, given its recent rapid growth in China. So when we look at US broad money supply, we should be aware there is a further mountain of money thirteen times as big ultimately based on the dollar.
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Friday, February 21, 2014
Currency Wars the Great Destabilizer / Currencies / Fiat Currency
By: Steve_H_Hanke
Dr. Karl Schiller, West Germany’s Economics Minister between 1966 and 1972, pithily pronounced that: “Stability is not everything, but without stability, everything is nothing.” I agree. In the economic sphere, instability is usually a “bad”, not a “good”.
The world’s great destabilizer is the United States. How could this be? In the post-World War II era, the world has been on a U.S. dollar standard. Accordingly, the U.S. Federal Reserve is the de facto central banker for the world.
Friday, February 21, 2014
How China Fooled the World with Fiat / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
The Chinese financial system, along with the rest of the emerging market, exist as an extension of "the world is flat monetary policy" on a scale never seen before. It is equally a giant leverage play on the last remaining resources for a population that has overproduced its stay.
The financial blog Zerohedge.com recently presented a summary of a BBC program featuring a report from Robert Peston, who traveled to China to investigate how the mighty economic giant could actually be in serious trouble.
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Saturday, February 15, 2014
Fiat Money - A House Built On Sand / Currencies / Fiat Currency
By: Richard_Mills
Warning, I'm not a licensed financial planner, a broker, an analyst, a geologist nor an economist. And I'm also not, as you so often tell me in your e-mails regarding my articles, an English professor. I'm also not a doom and gloomer nor am I a gold bug.
I'm just an investor who believes precious metals are the only financial safety net worth owning and need to be the cornerstone of any generational wealth building program.
Everyone should own gold and silver bullion in the form of coins and bars.
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Thursday, February 13, 2014
Myths and Lessons of the Argentine “Currency Crisis” / Currencies / Fiat Currency
By: Joseph_T_Salerno
The crash of the Argentine peso last month brings to a close yet another foredoomed experiment in South American left-wing populism. The precipitous “devaluation” of the peso by 15 percent against the U.S. dollar in January represents its steepest decline since the devaluation of 2001 when Argentina defaulted on its foreign debt. From January 21 to the close of trading on January 23 the peso dropped from 6.88 per dollar to 8.00 on the official market. On the black market the peso fell by 6 percent on January 23 to 13 to the dollar. Over the past year the peso has declined by 35 percent.
Tuesday, January 28, 2014
Prepare for Currency Chaos / Currencies / Fiat Currency
By: Michael_Pento
On November the 25th I published the following warning about the effects from the Fed’s imminent tapering of asset purchases:
“There is a good chance that the beginning of tapering will lead to a reversal of the trade to sell gold ahead of the news. But the major averages have priced in a sustainable recovery on the other side of QE, which will not come to fruition. For the Dow, S&P 500 and NASDAQ the end of QE will be especially painful. A unilateral removal of stimulus on the part of the Fed will send the dollar soaring [especially against emerging market currencies] and risk assets plunging -- you could throw in emerging market equities and any other interest rate sensitive investment on planet earth.”
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Saturday, December 14, 2013
How the Paper Fiat Money Experiment Will End / Currencies / Fiat Currency
By: Philipp_Bagus
A paper currency system contains the seeds of its own destruction. The temptation for the monopolist money producer to increase the money supply is almost irresistible. In such a system with a constantly increasing money supply and, as a consequence, constantly increasing prices, it does not make much sense to save in cash to purchase assets later. A better strategy, given this senario, is to go into debt to purchase assets and pay back the debts later with a devalued currency. Moreover, it makes sense to purchase assets that can later be pledged as collateral to obtain further bank loans. A paper money system leads to excessive debt.
Monday, December 02, 2013
A Look at Digital Currency in the Global Monetary System / Currencies / Fiat Currency
By: Keith_Hilden
We currently find ourselves in quite the economic quandary. Controlling banking interests are seeking increasingly cashless transaction systems. Various anti-cash legislation actions coupled with a media blitz towards a cashless society acts as supporting material for this shift towards an increasingly digital monetary system. At the same time, a patchwork group of individuals from all walks of life are now using digital currency and payment systems by way of Bitcoin, Paypal, Ripple, and other digital currencies and digital payment systems. While digital currency and payment systems come with their advantages, we see an emerging real concern of account security being compromised in a system of digital currency and payments.
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Saturday, November 02, 2013
Entire Fiat Money System is Bankrupt: Demise of the Global US Fiat Dollar Reserve Currency / Politics / Fiat Currency
By: Global_Research
Matthias Chang writes: It’s been a while since I last wrote an article on the on-going financial crisis. I don’t write for the sake of writing, as others do because they have to do so, on account of their subscribers who pay hefty subscription fees and demand their money’s worth.
Major issues or trends do not change on a daily or even monthly basis. A trend may take a few years to run its course and unless there is a major factor that may affect the trend, there is hardly any need to comment any further on the trend or outcomes.
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Wednesday, October 30, 2013
Why Do Governments Devalue Their Currency Rates? / Currencies / Fiat Currency
By: Sahil_Hafeez
Currency Devaluation:
Currency devaluation occurs when a country allows the value of its currency to drop in relation to other currencies.
Why do countries let their currency fall in value?
Almost all the countries of the world have devalued their currencies time to time to achieve certain economic objectives. Following are the main objectives of devaluation:
Saturday, October 26, 2013
Time Out For The PetroDollar Conspiracy / Politics / Fiat Currency
By: Andrew_McKillop
FIRST YOU HAVE TO BELIEVE
I have plenty of articles published on this subject, and I break up the 40-odd years of “the petrodollar system” into at least 3 clear main phases. More important, the present one is the last one. For a valedictory and uncertain, but official argument for the present phase, the US Federal Reserve Bank of NY has a full statement http://www.newyorkfed.org/research/current_issues/ci12-9/ci12-9.html.
Friday, October 18, 2013
The Biggest Scam In The History Of Mankind - Hidden Secrets of Money Video / Currencies / Fiat Currency
By: GoldSilver
You are about to learn one of the biggest secrets in the history of the world... it's a secret that has huge effects for everyone who lives on this planet. Most people can feel deep down that something isn't quite right with the world economy, but few know what it is.
Gone are the days where a family can survive on just one paycheck... every day it seems that things are more and more out of control, yet only one in a million understand why. You are about to discover the system that is ultimately responsible for most of the inequality in our world today.
Saturday, October 12, 2013
Preparing for The Big One - U.S. Dollar Revolt / Stock-Markets / Fiat Currency
By: DeepCaster_LLC
”Federal Reserve Chairman Ben S. Bernanke has been tap dancing on a land mine since 2008. He has avoided detonating an intensified banking-system crisis, so far, but the cost has been that of locking the Fed into near-perpetual quantitative easing and monetization of U.S. Treasury debt, with horrendous implications for future domestic inflation and U.S. dollar debasement…. the Fed has locked itself into quantitative easing for some time to come, irrespective of any jawboning to the contrary….
Wednesday, October 09, 2013
Fiat Paper Currencies are NOT Gold! / Currencies / Fiat Currency
By: DeviantInvestor
Paper currencies seem normal. They seem natural. We are told they are necessary. Paper currencies with no intrinsic value are used everywhere - we pretend they are valuable. If we don't look closely, or remember the world of 60 years ago, they seem like a good idea.
Monopoly money. Euros. Dollars. What is the essential difference? Paper, with no intrinsic value, is accepted only because we have confidence in the issuer of the currency and/or because we have no other choice. Monopoly money can buy hotels on Park Place. Unbacked paper dollars can buy hotels in Manhattan. The hundreds of unbacked paper currencies that have become worthless during the last century can buy NOTHING.
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Friday, October 04, 2013
Syrian Pound Soars, Iran’s Single Digit Inflation, and Other Troubled Currencies / Currencies / Fiat Currency
By: Steve_H_Hanke
Syria: On September 27th, the United Nations Security Council unanimously adopted a resolution outlining the details of the turn over and dismantlement of Syria’s chemical weapons. Syria’s president, Bashar al-Assad, has stated that his government will abide by last week’s UN resolution calling for the country’s chemical weapons to be destroyed.
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Tuesday, September 10, 2013
Cheap Money Means Nothing is safe – Not student loans, Emerging markets, or London flats... / Stock-Markets / Fiat Currency
By: Adrian_Ash
Did you enjoy your monthly dose of non-farms nonsense last Friday?
Gold and silver both erased Thursday's drop when the latest US jobs figures were released. Set your gold or silver chart to one-week (1w) to see the silliness.
But were August's non-farm payrolls really so meaningless? Cutting the jobless rate is one-half of the US Federal Reserve's mandate (the other is beating inflation - or whisking it, perhaps, after folding in egg whites). And whatever he does (or doesn't do) to quantitative easing at next week's much-awaited policy meeting, Fed chairman Bernanke has made a 7.0% jobless rate a key condition for any talk of raising Dollar interest rates from zero.
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Thursday, September 05, 2013
US Dollar As Money, Myths, Lies, Deceptions and Millstones / Currencies / Fiat Currency
By: Jim_Willie_CB
Many are the myths held so firm by the public. Many are the lies told so boldly by the leaders. Many are the millstones around the neck of the system that is fast losing its momentum. Many are the frauds committed routinely in full view. The entire US system is unraveling, myths exposed, lies contradicted, while the millstones weigh down the financial and economic system. The absent Gold Standard, the invalidity of money, the insolvency of banks, the toxic nature of sovereign debt, the illegitimate money, the intrusive debilitating central bank franchise system, these are grand millstones around the neck of the Western system. The current monetary policy is killing capital, a fact not observed by 5% of working economists, the harlots working closely to policy making. The nation is hurtling quickly toward systemic failure in every conceivable frame of light. A quick review should be revealing of myths, lies, deceptions, and millstones.